Payment services: Account issuance service
How is account issuance regulated under the Singapore PSA?
Under the Payment Services Act (PSA), Singapore, account issuance is regulated under the activity based, risk-focused licensing framework.
- Account issuance service providers must hold a license to provide services relating to the operation of a payment account (an e-wallet or a non-bank issued credit card)
- The service provider can either hold
- a standard payment institution license to conduct payment services below a specified threshold
- a major payment institution license without any limits on transaction volume or float
The licensee must comply with the ongoing requirements set out under PS Act and other relevant legislations including – AML/CFT requirements, periodic returns, cyber hygiene, business conduct, disclosures and communications and annual audit requirements. Additionally, the licensee must not facilitate users to withdraw e-money from their accounts and exchange the e-money for Singapore currency if the user is resident in Singapore.